Petroleum Minister Says IMF Conditions Behind Rising Petrol and Diesel Prices in Pakistan

Islamabad: Ali Pervaiz Malik has stated that rising petrol and diesel prices in Pakistan are largely linked to conditions imposed under the International Monetary Fund (IMF) program, particularly the increase in petroleum levy charges.
Speaking during a meeting of the Senate Standing Committee on Petroleum, the minister briefed lawmakers on petroleum pricing, taxation policies, and IMF-related financial targets.
Ali Pervaiz Malik said that under the IMF program, the government had been compelled to increase petroleum levies in order to meet revenue goals. He revealed that the IMF’s target is to raise the levy on petrol and diesel to Rs160 per litre.
According to the minister, the original federal budget had been prepared on the basis of an agreement with the IMF to collect Rs80 per litre in petroleum levy. However, changing economic conditions after the budget forced the government to further increase levies to keep the IMF program on track.
He explained that the high cost of fuel in Pakistan is mainly due to these heavy levies rather than only international oil prices. The minister added that while several countries reduced taxes during fluctuations in global oil markets to provide relief to citizens, Pakistan remains unable to reduce taxes or levies because of strict IMF conditions and revenue commitments.
Committee members expressed serious concern over the possibility of further increases in petroleum levies and the growing burden on the public. During the briefing, officials clarified that fuel prices in Pakistan are now influenced not only by international market trends but also by IMF-agreed revenue targets.
The government, the committee was told, remains committed to implementing the IMF program for economic stability while trying to minimize the financial burden on the public.